Critical Analysis of Labour Law Reforms 2020 in India with Special Reference to Labour Codes

Abstract

The labour law reforms of 2020 represent a historic step towards modernising labour regulation, enhancing the protection of workers and aligning Indian labour law with international norms. They lay the foundation for a stronger and more resilient relationship between employer and employee in India, and form a significant move towards Aatmanirbhar Bharat. The International Labour Organization has framed many conventions and recommendations for the protection of workers, and the Directive Principles of State Policy in the Constitution of India provide several safeguards for them. The key reason behind the reforms is the simplification of a complex body of law. A multiplicity of statutes, of authorities and of overlapping jurisdictions had made compliance difficult, and most of the enactments, framed before Independence, no longer suited the present economic environment or the pace of technological change. The reforms bring about major changes through four labour codes, which repeal twenty-nine central laws. The codes seek to balance the interests of employers and employees; the Government's view is that they are labour centric, while trade unions allege that they favour the employer. Many provisions are new and many others have been updated. The benefits extend to areas such as fixed term employment, gig and platform work, contract labour, women workers, young workers, beedi and cigar workers, workers in micro, small and medium enterprises, plantation workers, audio-visual and digital media workers, mine workers, workers in hazardous industries, textile workers, workers in information technology and dock workers. Besides this, the codes introduce several reforms intended to strengthen the workforce and to ease compliance for employers, including a national floor wage, gender neutral pay and job opportunities, the inspector cum facilitator, an approach of awareness and support rather than punitive action, a faster dispute resolution system, single registration, a single licence and a single return, and safety committees in establishments.